Car maker Hyundai Motors is setting up a new electric vehicle (EV) plant in Ulsan, South Korea, with an investment of KRW2 trillion ($1.53 billion).

The construction for the facility will begin in the fourth quarter of 2023, and vehicle production is slated to begin in the first quarter of 2026, with the aim of producing 200,000 EVs annually.

“The new EV-dedicated plant in Ulsan is the beginning of a promising future for the next 50 years and the era of electrification. I trust Ulsan will be an innovative mobility city that leads the way in the era of electrification, starting with a dedicated EV plant,” said Euisun Chung, Executive Chair of Hyundai Motor Group, at the groundbreaking ceremony.

As per the company, the Ulsan Plant will become a base of sustainable mobility production and lay the foundation for future growth.

This facility, dedicated to EVs, will be the company’s first new plant in Korea in 29 years.

Earlier this year, Hyundai Motors formed a 50:50 venture with EV battery maker SK On to invest $5 billion in an EV battery cell production facility in the U.S. The facility will produce 35 GWh of battery cells annually by 2025.

This was followed by another joint venture between the company and LG Energy Solution to manufacture EV battery cells in Savannah, Georgia, in the U.S.

In realizing its electrification strategy roadmap, the company also allocated $87 billion in 2021 to develop EVs and autonomous vehicles and expand its portfolio in the next three years, which entailed partnerships with multiple stakeholders across battery dealing in batteries, charging infrastructure, battery recycling, and shared mobility companies.

EV sales in India also have been on the rise, with the increased demand for sustainable and affordable transportation. The EV sales reached 371,214 units in the third quarter of 2023, a year-over-year increase of 40% compared to 264,781 units sold in the same period last year. Evs accounted for 7.3% of overall automobile sales.